Multiple choice

Capital rationing is defined as

  1. the process of allocation of capital funds over various capital projects accoding to their ranks or profitability

  2. the process of distribution of available capital funds among various capital projects according to their ranks or profitability

  3. the process of distributing and allocating funds to existing capital projects accoding to their ranks or profitability

  4. all of the above

  5. only 1 and 2
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Owner' s wealth should be maximised.

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